Impact of Ukraine and Russia War on UK Economy

Business Environment
Task 1

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Contemporary Business Environment has huge competitive market which keep on
changing on the continuous basis at very fast pace (Hamilton and Webster, 2018). They are
increasingly dynamic and competitive and there are some changes in the new concepts related to
control have to be developed to cope up with change. To handle the rapid changes, companies
managers develop reliable and logical business strategies. They make strategies in order to
support control, planning and decision making to utilize management accounting technique. This
helps the manager of company in identifying the opportunities and threats. They can easily grab
the opportunity by analysing the threat in order to attain the goal and success of the organisation.
Managers of the organisation have to understand the development in the business which need to
be done and requirement in order to attain success and goal by garbing fast business response.
Russia and Ukraine war has impacted the country and Russia wants to take Donetsk,
Zaporizhzhia, Luhansk and Kherson. Due to the war, the forests ignited because of fire due to
factories and the living beings are also affected. The endangered species also suffers because of
heat and fire and long term effect could be profound.
MAIN BODY
UK economy is impacted because of the Ukraine and Russia war because UK has some
direct economic links with the Russia (Averre and Wolczuk, 2018). There is a trade between the
two countries which is relatively small to the size of economy and however Russia is not
integrated or connected in the global financial system. The income circular flow is the model
which includes major exchange in the agents of economy which are represented by flow of
products, money, services and many more.
The circular flow of income indicates how money flows in within the society which
includes the flow of money from manufacturer to the workforce in the form of salary and wages
(Kolsto, 2017). The money flows back to the business by payments of the services and goods
which they have sell and rendered. It set up a link between the manufacturer and customer and
aids in studying the issue of restoration of equilibrium and disequilibrium. Due to the Ukraine
and Russia war, the most effected country is UK.
The economy of the UK is forecast that up to next year it is going to slow down (Sun and
Zhang 2022). In February, the Ukraine war is started which have created the drastic effect on the